Jacaranda will begin providing positive credit data alongside major banks on July 1, 2018.
Short-term loan lender Jacaranda Finance has announced that it will provide positive credit report data to credit bureaus under the Comprehensive Credit Reporting Regime (CCR) from July 1, 2018. following the announcement by Federal Treasurer Scott Morrison that Australia’s big four banks would be mandated to share their positive credit data after their slow response to the introduction of the CCR voluntary rules in 2014.
Major banks will be required to share 50% of their positive credit data by July 1, 2018, increasing to 100% by July 1, 2019.
Jacaranda Finance founder and CEO Daniel Wessels fully supports CCR, saying he’s glad the lender can expand its criteria “in such a positive way”.
“We look to the customer’s potential, not just the risk,” he said.
“A positive credit report means we can get a much better idea of a candidate’s eligibility based on more specific financial information belonging to the candidate.”
“Once this system is launched, it will be so much easier for consumers to improve their credit score and financial situation.”
The government has previously called on banks to participate in the CCR for the benefit of lenders such as Jacaranda Finance. As part of the Independent Review of Small Amount Credit Agreements (SACC), the Treasury said the bank’s involvement could help short-term lenders make more informed decisions.
Many short-term lenders (commonly referred to as payday lenders) rely on a borrower’s banking history, income, and employment information to gauge their suitability for a loan, but this may change with data. more positive information available on a borrower’s credit report.
“In starting Jacaranda Finance, I wanted to be able to set up a platform where consumers from all walks of life could come to ask for help when life threw an unexpected bill or expense at them,” Wessels said.
“As we have our own responsibilities when it comes to approving eligible applicants, I am pleased that we can now broaden our criteria.”